This week Fair Supply is in New York City for 2022 Concordia Annual Summit and Climate Week NYC 2022. We invite you to follow our blog for regular updates and insights from speakers and forums as the week unfolds.
Signing off now
Concordia closed with First Lady Jill Biden's remarks and before her an interview with Tony Blair.
Jumping back from Climate Week NYC 2022 to Concordia Annual Summit
Panel: Tackling Forced Labour in Supply Chains
Kimberly Randle, CEO, Fair Supply, Ambassador John Cotton Richmond, Partner, Dentons, Heather Fischer, Senior Advisor, Human Rights Crimes, Thomas Reuters Special Services, Nelufar Hedayat, Doha Debates.
- We need to work with governments to strengthen justice systems. We're failing these victims. Ambassador John Cotton Richmond.
- Because governments aren't doing their job, business is being called on to help.
- Unless businesses have a way of ensuring visibility over their supply chain they won't be able to fix what they can't see. Kimberly Randle.
Q. What does failure and success look like in your organisations?
- Failure for us is to stay in our silo. Heather Fischer.
- Failure looks like people being exploited. Success looks like companies with the right capabilities in place to address slavery in their supply chain. This mandatory reporting regime is coming. Look to the EU. Companies will be held accountable for their supplier, their supplier's supplier. Their supplier's supplier supplier. This may be the biggest shift in vicarious liability ever. Ambassador John Cotton Richmond
- Success looks like companies actioning the risk identification. Embedding human rights into policies and business risk. Transparency is first step to accountability. Companies need to be accountable for the right things. Kimberly Randle.
- EU is now leading. The movement is from transparency to due diligence. It's not a question of whether it's there, it's what the company does when they discover that. Ambassador John Cotton Richmond
- This commitment to eradicating human trafficking in their supply chains needs to move to the C-suite. Heather Fischer
Panel: Is "accountability" now more important than the commitments we make?
Rob Fisher, US Impact Leader KPMG, Judith Wiese, Chief People and Sustainability Officer, Siemens, Yan Garcia, Secretary, CalEPA, John Morton, Climate Counselor, US Department of the Treasury, Mark Campanale, Founder & Executive Chairman, Climate Tracker.
- How do we incentivise, cajole private sector pathways to Net Zero? John Morton
- Accountability earns us trust with our stakeholders. Clear ESG target system. We welcome standards that are meaningful and transparent. Judith Wiese
- Setting our ambition higher where it's necessary is critical. California recently enacted a bill to drive emissions down by 85% from 1990 levels by 2040. We need to stay focused on real outcomes for vulnerable communities. Yan Garcia
- The financial system was built to support the fossil fuel economy. About 50% of the bond market. About 25% of equity. Each company needs to present a costed plan on how they will make the transition. We're building a green energy system that is growing by 20% a year. Mark Campanale.
- Investors have been the most impactful stakeholder so far as they push for value. Rob Fisher.
- Financial materiality is really important. Assets causing emissions so be disclosed. We need to get clarity on the investment consequences of this transition. Mark Campanale.
- Mandatory disclosure is only going to increase. Therefore now is the moment to act before we get to the cliff in this transition. Market forces are now driving this transition. John Morton.
- Operational roadmaps to achieve the bigger goals are critical. Judith Wiese. Eg. 80% of carbon footprint is generated in the design of the product. The leading organisations are asking, How do we get the data on our suppliers, suppliers etc? We need a lot more innovation about how we get the data on the suppliers. Rob Fisher, US Impact Leader KPMG
- Supplier surveys are just too big of a task. Can you get the data through technology? How can I go to source and get high quality data? Rob Fisher.
- Integrated responses to these challenges are needed. E.g. State of California. $54b climate budget needs to address rehousing issues which are the result of climate change. Yan Garcia.
- Accountability requires creating an ecosystem. Rob Fisher.
- Clean energy system will be chcaper. Accountability involves disclosing the cost of this transition. Judith Wiese.
- Risk and opportunity are the twin drivers to take us forward. John Morton,
- Demonstrating accountability must become central to our strategies. But what does it mean?
Ali Zaidi, National Climate Advisor to The White House
- Three pillars to the strategy:
- We're in the decisive decade.
- Made in America. Our consciousness in the world is as heightened as it's ever been around where our stuff comes from.
- Emphasis on empowering local businesses and communities.
- Embed green targets into remuneration packages.
- Educate your Boards. Especially around Scope 2,3.
- Celebrate the successes on our imperfect journey.
Conversation with Paul Polman, Former CEO of Unilever and Co-Author of "Net-Positive"
- Most companies start to address an issue in society.
- We worked on collective purpose to make sustainable purpose commonplace.
- It gave people courage to take responsibility for our collective impact.
- We set targets that science needed.
- We can't do it alone, so we did it in partnership and became a little more human.
- We spent a lot of time attracting the right shareholders, getting the right Board.
- Your company impact targets are not targets for your company they are targets for humanity.
- Stretch targets based on science are essential.
- Waste is a human issue. We've invested waste so we can also uninvent it. It's a mindset change.
- We need to redesign the system. We need to measure what we treasure.
- There is greenwashing now in business and in politics.
- The bigger role that business can play is to get into the area of government and policy.
- "We will get it done. I'm a prisoner of hope. We need courageous leaders that set the targets and are willing to take responsibility and work collaboratively and take responsibility for our total impact in this world. if you're not like, get out of the way."
Further together or faster alone? How does leadership, "action" and responsibility need to change in the Climate Decade? Maria Mendiluce - CEO, We Mean Business Coalition, Kate Brandt, Chief Sustainability Officer, Google, Christopher Guerin, CEO, Nexans
- This is the decisive decade. We have 88 mths left in this decade. The question seems to be how do we help everyone reach their targets.
Q. When do you decide to collaborate with others?
- These are bold system changes, even a large company can't do this alone. Kate Brandt, Chief Sustainability Officer
- We know that electrification is the fastest way to Net Zero. So this is all about copper. So we know that we will face a mega shortage of copper starting in 2025. So we need to recycle. How do we build an ecosystem around recycling. The waste of today is the growth of tomorrow. Christopher Guerin, CEO, Nexans
- We need to report on progress. That's fundamental. Maria Mendiluce - CEO, We Mean Business Coalition
Q. When do you pick the moment to go out alone on a topic?
- Google asks itself, What are we uniquely positioned to do? E.g. eco-routing is the default on Google Maps (launched in October). Embed sustainable choices right there in the products.
- More customers, more products doesn't mean more products. We ask how much carbon are we emitting to serve those customers? So we are relocating our resources. We're trying to find a bridge between profit and the environment. Infinite growth is over. You need to rethink how you manage your business. Christopher Guerin, CEO, Nexans
- Companies need to collaborate, but they also need to compete in this domain. Maria Mendiluce - CEO, We Mean Business Coalition
Q. What do you think is front of mind and how are leaders setting their strategies?
- Mega risks are going faster than mega trends. We need to think long term with a high level of commitment. The most important thing is to find new ways to operate the company. Economics, Environment, Engagement. We ensure the capital allocation goes to the units that perform against the 3Es. I need to train the managers of today, this is urgent. Christopher Guerin, CEO, Nexans
- Scope 3 emissions are the challenge for businesses. Bare minimum companies need to meet with their Tier 1 suppliers and set Science Based Targets. We need to change the narrative. This is about business. Maria Mendiluce - CEO, We Mean Business Coalition
- Google. Cities are key. What do cities need to accelerate decarbonisation? We've been building a tool to that end. Our goal is to help 500 cities by 2030 reducing a giga ton of carbon. Kate Brandt, Chief Sustainability Officer, Google.
Q. Policy makers.
- "Egos create siloes". We need a longer term perspective which is difficult given the political climate. Christopher Guerin, CEO, Nexans
- How do we provide policy makers with data that is decision-useful? How can we be really specific about what policy makers need to ensure action? Kate Brandt, Chief Sustainability Officer, Google
Helen Clarkson - CEO Climate Group
- How do we go fast and go together? This requires a new level of leadership today.
- Now or never for bold leadership
Climate Week NYC
Turning the tide towards a sustainable world amid a tsunami of crises Dr Rajiv Shah, The Rockefeller Foundation Andy Serwer, Yahoo! Finance
- Emerging economies need to be included in the energy transition.
- Developing economies are for more vulnerable to climate impacts. This is also true with regards to fiscal crises.
- Dr Rajiv Shah is arguing that 60% of developing economies are teetering on debt crises. We are systematically wiping out decades of progress in human development.
- Deglobalisation is an opportunity to grow local resilience.
Why the Amazon must save the world H.E. Ivan Duque Marquez, Former President of Columbia
- We need to not simply be carbon neutral but we must be Nature Positive.
- How will we meet the 30 by 2030 target?
- That's why the conversation about the Amazon is important.
- Home to 30% of all the species on the planet. Every 3 days a new species is discovered in the Amazon.
- Since 1970 to today, in the Amazon, we have lost territory as big as Germany and France together.
- There will come a point where the damage done to the Amazon will be irreversible.
- Announced launch of the Concordia Amazon Initiative. Designed to foster public private partnerships to protect the Amazon. Green finance will be important for this endeavour.
- We need to enshrine the concept of circular economy. We need to create aggregated value chains.
- Amazon is critical to any pursuit of Nature Positive.
Tackling the Climate Emergency Chris Barnard, American Conservation Coalition Hon. Byron Donalds, US House of Representatives (FL-19)
- What is going to be the future of the energy matrix in the US? That's the conversation policy makers should focus on, says Hon. Byron Donalds.
- Hon. Byron Donalds is deeply convinced increasing the nuclear base load is key to the road to zero emissions.
- We need an honest conversation about the road that will get us to zero emissions. Cheap and readily available energy is key to ensuring the poor do not suffer in the energy transition.
Keynote remarks; George Logothetis, Executive Chairman, Libra Group
- Temporary regression is sometimes a necessary step in progression.
- Every generation has it's seemingly insurmountable issue but we do surmount. The healthiest form of progress is often incremental.
- We have a surplus of information but a deficit of insight.
- Machines work at a speed that promotes anxiety but dilutes empathy.
- We need two way conversation: we talk and we listen.
- Inspiration awaits. Use it wisely.
Strengthening Supply Chains Through Digital Innovation Ryan Heath, Politico, Barbara Humpton, Siemens USA, Kevin Rabinovitch, Mars, Andrew Liveris, Lucid Motors, former Dow Chemical Company
- Question: At what point do companies need governments to act to ensure these global supply chains?
- General sentiment; We need governments to set the rules of the road. "Ignorance is not bliss. What you don't know about your supply chains is a risk. We are at the end of the commodity era....In the world of sustainability we care about the process." Kevin Rabinovitch, Mars
- Better security and better awareness of what is going on is critical. Kevin Rabinovitch, Mars
- We need to redesign our supply chains. The old weren't designed to manage issues like deforestation. We now have a different set of design constraints. We need to think about how digital innovation can help in that design process.
- Government investment can send a message to the markets and the markets can respond.
- "Know how, know when, know who" is the new supply chain doctrine, Andrew Liversis, Lucid Motors
- Probably the biggest change is the data now available to understand our supply chains, Kevin Rabinovitch, Mars. What is needed is a strong infrastructure of data. Led by the science, led by the data, led by the facts. The issue is the availability and data to understand the impact of our supply chain. Generate the information to feed the governance machine that already exists.
- Question: How do you manage with the ESG metric soup?
- This takes a lot of resources. It's like the wild west in ESG metrics. The question we use is, Can this make sense to everyone? We ask, What is the cost of doing nothing? We see this as very organic, as who we are. And our business strategy is built on it. Barbara Humpton, Siemens USA
- Our employees demand these changes, Andrew Liveris. We need a bottom up approach - businesses and governments. We need to share our KPIs cross-sectorally because this is about the common good. We have to leverage everyone's best knowledge.
- We need to patient in this ESG Wild West but we also need to be impatient with it. There is so little focus on actual performance rather than future claims of net-zero. We need to drive the discussion toward performance. Kevin Rabinovitch.
Barbara Humpton, President & CEO of Siemens USA
- "We're gathering at at time where the stakes are incredibly high."
- The clock-speed for change when it comes to infrastructure is actually slow. So how do we move with speed and scale to meet the moments of disruption we need to meet now?
- Government, business and NGOs play a critical role.
- This moment of disruption provides a unique opportunity for glocalisation.
The Impact of Business Technology in Society Eric Loeb, Salesforce, Inc. LLC Amb. Amandeep Singh Gill, United Nations.
- Stressed the importance of inclusivity and perspective in charting a digital future
- Mentioned a Digital Compact to be launched soon.
Honourable Eric Adams, Mayor Of New York “If we are going to solve global problems then we need global voices… we need to expand and lead into our discomfort. ‘Everything we face can’t be changed but nothing can be changed without facing them.’”James Baldwin
Matthew Swift, Concordia
- “The challenges we face are more diverse more pressing than any other moment in history”
- “Challenge of chatting a course through the post-pandemic world”
- “Concordia is many voices, one summit”
19th September 9am
About: Concordia Annual Summit, 19-21 September 2022
Concordia Annual Summit begins: 9am (GMT -4) 19 September 2022 "With over a decade of experience bringing together heads of state, leaders of the private and NGO sectors, and new and diversified perspectives to explore tangible solutions to local and global challenges, the 2022 Concordia Annual Summit will be the largest convening alongside the UN General Assembly. Our 12th Annual Summit will convene the top movers and shakers of today’s world to spark dialogue, promote collaboration, and collectively pave the path toward a more equitable, sustainable future." Kimberly Randle, Fair Supply co-founder & CEO, is a panelist on 2:55pm (GMT-4) Tuesday, 20 September MEETING THE MOMENT: TACKLING FORCED LABOR IN SUPPLY CHAINS Sustaining an ethical supply chain and labor force has been a challenge for businesses small and large as they race to meet the demands of their consumers and ensure that they are getting a return on their investments. Increasingly, many have been accused of using forced labor to produce their commodities from the apparel sector, the energy sector, tech sector and beyond. This can be due to nebulous supply chain procurement practices or to lack of support from government entities that often leave corporations feeling like there is no other choice. Thus, this session is dedicated to setting the current scene of best practices for ethical material and labor sourcing as well as the data tools that can be used to promote an in-depth analysis of supply chains and making sure human rights are protected and upheld by small or large corporations as well as by foreign governments.
About: Climate Week NYC 2022
Billed as "The biggest Climate event on earth," Climate Week NYC 2022, "marks its fourteenth year as the biggest global climate event of its kind. Bringing together the most influential leaders in climate action from business, government, and the climate community, in conjunction with the United Nations General Assembly and the City of New York. Climate Week NYC creates an ambitious platform for our mission to drive climate action. Fast."